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BTL Mortgage questions

DesG
DesG Posts: 1,291 Forumite
Part of the Furniture 1,000 Posts Combo Breaker
edited 13 January 2012 at 11:37PM in Mortgages & endowments
Hi,

I have a couple of questions on BTL.

As a first time Landlord with £25K+ income and own a residential property...

What is the maximum LTV can I achieve as a first time landlord? (assuming the 125% rule isn't an issue)

Are there any problems using a Ltd company as the owner/landlord?

And a semi-related question, if you purchase say 3 flats for £100,000 each in one transaction is there a stamp duty issue, based on the total cost of the transaction, or is it treated as 3 separate properties all under the threshold? On the HMRC site it isn't exactly clear.

Cheers, Des

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    1. Around 75% - 80% LTV.

    2. Few if any lenders will consider this now.

    3. Separate transactions

    With regards to the 125% rule. Lenders will use a notional interest rate not the product rate. So could be as high as 7% (currently).
  • DesG
    DesG Posts: 1,291 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Thrugelmir wrote: »
    1. Around 75% - 80% LTV.

    Excellent 75 or 80% is do-able.
    Thrugelmir wrote: »
    2. Few if any lenders will consider this now.

    Even with a SPV? I don't have to do it that way, but it would be a preference. Personal guarantee not an issue.
    Thrugelmir wrote: »
    3. Separate transactions

    Thanks, that makes the spreadsheet happy ;)
    Thrugelmir wrote: »
    With regards to the 125% rule. Lenders will use a notional interest rate not the product rate. So could be as high as 7% (currently).

    Not an issue :)

    Thanks for the help!

    Cheers, Des.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    DesG wrote: »
    Even with a SPV? I don't have to do it that way, but it would be a preference. Personal guarantee not an issue.

    What do you see as the advantages?
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